Texas Edges Closer to Establishing Bitcoin Reserve
By: Isha Das
In a significant move toward cryptocurrency adoption, Texas is on the brink of establishing a state-level Bitcoin reserve following the advancement of Senate Bill 21 (SB 21) in the Texas legislature. This initiative, supported by a substantial 105-23 vote in the state House of Representatives, reflects bipartisan backing and marks a pivotal step in Texas's digital financial landscape.
The bill, aiming to set up a Strategic Bitcoin Reserve (SBR), would place Texas alongside a select group of U.S. states exploring direct Bitcoin exposure at the governmental level. If enacted, Texas, with its $2.6 trillion economy, would be the most substantial economy to adopt such a move, surpassing notable economies like Russia, Canada, and Australia. Once SB 21 receives approval from Governor Greg Abbott, Texas will join Arizona and New Hampshire as the third state to incorporate Bitcoin into its financial framework.
Key provisions of the bill allow the state comptroller to purchase Bitcoin using surplus General Revenue. These purchases will adhere to strict reporting rules similar to those used for gold bullion in the Texas Bullion Depository. The legislation's passage could bolster Texas's fiscal stability and reinforce its position as a forward-thinking region in global finance. State Representative Giovanni Capriglione emphasized the strategic nature of the move as a leap forward into the digital age, embracing a modern asset with inherent traditional properties that promise a bright future.
An essential amendment to the bill requires that any qualifying digital asset maintain a market cap above $500 billion for at least two years. This criteria currently leaves Bitcoin as the sole eligible digital currency, given its standing as a market leader with a valuation exceeding $2 trillion. The measure awaits Governor Abbott’s signature within the next 20 days, after which it will be poised to become law or face a possible veto. Nevertheless, the overall momentum and broad support suggest a promising trajectory for Bitcoin adoption at the state level in Texas.
